itX confirms it's in takeover talks

ASX-listed IT distributor yet to form a view on potential buyer interest

ASX-listed IT distributor, itX (ASX:ITX), has confirmed it has been approached by a potential buyer and is in discussions.

However, the distributor, which has been a strong Sun Microsystems and now Oracle partner for some time, said it had not formed a view on the potential take over.

“itX confirms that it is in discussions with an interested party regarding a preliminary non-binding indication of interest to acquire 100% of the ordinary shares in itX,” it said in a statement to the ASX.

“The itX Board confirms that the indication of interest is indicative and non bonding, and the itX Board has not formed a view with respect to the indication of interest. At present, there is no certainty that the discussions will lead to an offer or proposal being put to itX shareholders.”

The announcement was brought on after speculation by The Age newspaper in Melbourne.

At the time of publication the distributor's shares had shot up over 18 per cent for the day to sit at $1.47.

The distie recently reported a record after tax profit of $7.58 million for the full financial year, a year on year increase of 6.5 per cent.

itX managing director, Laurie Sellers, said the conditions for “our IT Distribution business were difficult in the second half of the financial year”.

“The acquisition of Sun Microsystems by Oracle in January 2010 caused temporary disruption to our supply chain and significantly impacted our revenues from this very important business segment.”

However, the software business remained strong while its web hosting and other technology products performed well.

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